Foxconn shareholders approve plan to list unit in Shanghai

TAIPEI (Reuters) - Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, said on Wednesday its shareholders had approved a plan to list its subsidiary, Foxconn Industrial Internet Co Ltd (FII), on the Shanghai Stock Exchange.

FILE PHOTO: The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's headquarters in New Taipei City, Taiwan March 29, 2016. REUTERS/Tyrone Siu/File Photo

Under the plan, approximately 10 percent of the industrial and internet-focused FII’s shares would be converted to floating stock, with Foxconn, formally known as Hon Hai Precision Industry Co, maintaining approximately 85 percent of FII shares, the statement said.

The pricing and timeline for FII’s initial public offering have still to be determined, the statement added.

Foxconn’s move is in line with the investments it has made to realize its industrial Internet-driven strategy, and it will allow the company to capitalize on opportunities presented by related developments in China, Foxconn said in its statement.

“Hon Hai will continue to make significant investments in infrastructure and other areas that will be instrumental in its transformation into a big data-driven, AI and robotic technology-based industrial Internet company,” it added.

The company also plans to increase the development and deployment of robots in the manufacturing process, from 60,000 robots now to 200,000 robots in the next few years, the statement detailed.

Earlier this month, Foxconn said that it posted a 50.2 percent year-on-year rise in revenues for December.

In July, Foxconn announced plans to build a $10 billion LCD display panel screen plant in Wisconsin, a deal that was announced at the U.S. White House. Foxconn said it planned to invest $10 billion over four years to build a 20-million square foot plant that could eventually employ up to 13,000.